Dow Hits Record High As EUR/JPY Grinds Higher And US Natural Gas Prices Drop

(MENAFN- DailyFX (IG)) ​​​Macro update ​US equities set new records:

​The S&P 500 posted its first record closing high since October, rising 0.21%, while the Dow also finished at a fresh peak, supported by a rotation away from richly valued AI stocks following the Federal Reserve's (Fed) rate cut.

​Rotation beneath the surface:

​Financials and materials led advances within the S&P 500, while technology shares declined, leaving the index trading at around 22 times forward earnings - down from October but still above its 10-year average.

​Tech remains dominant year to date:

​Despite the recent shift, the Nasdaq 100 is still up more than 22% this year, comfortably ahead of the S&P 500's roughly 17% gain, highlighting the continued leadership of large-cap technology in 2025.

​Broadcom weighs on AI sentiment:

​Broadcom forecast stronger-than-expected revenue but cautioned that quarterly margins would weaken, pushing the stock about 5% lower in after-hours trade and adding to broader caution around AI-linked names.

​Japan tracks Wall Street higher:

​The Nikkei 225 climbed 1.4% and the Topix closed at a record high, extending weekly gains as investors welcomed the Fed's move while shifting focus to the Bank of Japan's (BoJ) decision next week.

​Commodities and macro backdrop:

Copper prices hit record highs on hopes of further Chinese stimulus and a softer US dollar, while Asian equities advanced broadly even as lingering AI bubble concerns tempered enthusiasm for tech stocks.

​Dow Jones trades in record highs

​The Dow Jones Industrial Average is fast approaching the 49,000 region, above which beckons the psychological 50,000 mark.

​Minor support can be spotted at the previous November high at 48,431.

​Short-term outlook: bullish while above the 10 December low at 47,463

​Medium-term outlook: bullish while above the 14 October low at 45,452, targeting the 50,000 region

Dow Jones daily candlestick chart Source: TradingView ​EUR/JPY grinds higher

EUR/JPY is seen pushing towards the ¥183.00 region, now that it has taken out the (synthetic) June 1972 low at ¥182.47.

​The next technical upside target is the December 1981 low at ¥186.41.

​Immediate support sits at ¥182.00-to-¥181.88.

​Short-term outlook: bullish while above the November-to-December support line at ¥181.14

​Medium-term outlook: bullish while above the 21 November low at ¥179.78

EUR/JPY daily candlestick chart Source: TradingView ​Natural gas futures drop to six-week low

​US natural gas futures have rapidly come off their 5 December 494.9 record high and slid to a six-week low at 370.7 around which they may find short-term support.

​If not, the 55-day simple moving average (SMA) at 357.8 may be reached.

​Minor resistance is likely to be encountered in the 400.0 region.

​Short-term outlook: bearish but may find short-term support in the 370 region; if not, the 350 area may be revisited

​Medium-term outlook: neutral with a bearish bias while below the 450 zone

Natural gas daily candlestick chart Source: TradingView Important to know

^{This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.}

MENAFN12122025000076011015ID1110473530